- Copper prices staged a sharp rebound from a break below 100-DMA on Monday.
- However, recovery remains capped below daily cloud, bias remains lower.
- End of a strike at the world’s largest copper mine (in Chile) eased supply worries weighing on price.
- Price action below daily cloud, decisive close below 100-DMA (2.6164) to see further downside.
- Momentum studies are bearish, we see scope for test of 2.485 (trendline support).
- RSI converging nicely with price action, Stochs biased lower.
Support levels - 2.587 (Mar 22 low), 2.558 (Mar 9 low), 2.485 (trendline)
Resistance levels - 2.6386 (5-DMA), 2.6358 (cloud base), 2.654 (March 23 high)
TIME TREND INDEX OB/OS INDEX
1H Bearish Oversold
4H Bearish Neutral
1D Bearish Neutral
1W Bearish Neutral
Recommendation: Good to go short on close below 100-DMA, SL: 2.6270, TP: 2.560/ 2.50/ 2.485
